Create 3d rolling wave effect from still image

[TEG Designer]

I want to create this effect in photoshop or illustrator:

from this image:

I've been searching the web for a day and a half and can't find what I want. Is this possible? Please help. Thx!

[dianer_macperson]

The best way is: 

if you have photoshop 20.0.1 and above.

It was a new feature in 20.0.1 the ability to add points to a transform.

command T, (transform) then click the mesh button. use option to add points to the mesh. then just manipulate the point.

[dianer_macperson]

custom warp in transform mode

[dianer_macperson]

if you dont have the new photoshop, you can probably get away with using liquify with a large brush. and possibly puppet warp.